Finra
Which of the following must be disclosed on Form U4?
U4 disclosures: criminal history, customer complaints, regulatory actions, bankruptcies, liens.
Complete Analysis & Legal Rationale
A customer complaint settled for $15,000 or more that alleges a sales practice violation must be disclosed on Form U4. A $25,000 settlement exceeds that threshold and is reportable. Settlements below $15,000, minor traffic violations, non-investment-related misdemeanors, and informal verbal warnings are not reportable.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Minor traffic violations are not reportable.
Matches the verified teaching point in the explanation.
Non-investment-related misdemeanors like jaywalking are not reportable.
Verbal warnings are not formal disciplinary actions requiring disclosure.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA Series 7 outline.